Metro Capital specializes in resolving difficult creditor/debtor situations. Regardless of the matter at hand, Metro Capital’s success-based Balance Sheet Surgery approach is always provided at no cost to our referral partners. In fact it’s quite frequent for us to pay substantial referral fees!
If we feel we cannot be of significant assistance in any particular case, more traditional means remain available to all parties.
Our Referral Partners include:
Asset Based Lenders
Asset based lenders are our most consistent source of referrals. On a near daily basis you run across companies that have delinquent Accounts Payable, equipment leases, promissory notes, etc. that make it unlikely you’ll be able to fund those deals. But call in the pros at Metro Capital, have us significantly reduce those outstanding obligations, and now you’ve got a deal you can close!
Even if the situation will not impact your ability to fund, by bringing Metro Capital into the equation you not only improve the health of your client company, but also earn significant referral fees from us!
Commercial Collection Attorneys/Agencies:
If you’re in the commercial recovery business, you find yourself confronted daily with debtors that would truly like to pay their obligations – but the balance you’re attempting to recover is unfortunately a small part of a much larger problem. Paying your client, or even settling with them, does not in any way significantly resolve the debtor’s problem.
As a result, you either engage in pointless litigation, or the debtor files bankruptcy. Or both.
With Metro Capital’s Balance Sheet Surgery approach, we can do what you can’t – owing to your fiduciary responsibility to your client – and that’s coordinate the efforts with all creditors (except yours)!
As a result, the tremendous cost – and loss of value – associated with litigation and/or bankruptcy can be avoided, resulting in a much larger recover for your client.
Banks and Other Commercial Lenders:
Lenders today are still have significant volumes of “Rated” and “Special” assets on their balance sheet. By restructuring trade/unsecured debt; Metro Capital can significantly reduce the risk – and the resulting exposure – of a bankruptcy filing. Our expertise in dramatically reducing outstanding debt, and negotiating forbearance/modification/subordination agreements that meet lender guidelines, can significantly reduce your exposure on non-, or under-performing, loans.
Investment Groups and their Attorneys:
While the due diligence performed prior to you taking a position in a company is extensive, we all know things don’t always go as planned. Glitches and delays occur, market and technological conditions change, and you find yourself with a company still burning through cash well after the point you expected it to be in the black.
At this point, you essentially have two options: close the doors or recapitalize the company.
Assuming you still believe in the company’s prospects, Metro Capital’s Balance Sheet Surgery helps make recapitalization a more realistic alternative. Nobody wishes to put cash into a company only to see it go out the back door to pay old creditors. By the same token, no company can survive without vendors and they will require some payment.
Looking to Acquire or Divest a Distressed Asset?
Similar to the Investment Group case, if you’re contemplating an acquisition or divestiture of a company with an “upside down” balance sheet, you’ll get a far better execution once Metro Capital’s Balance Sheet Surgery has rationalized the Balance Sheet of the target or non-core asset. And you’ll sleep easier knowing prior obligations will never come back to haunt you in the future.
All Metro Capital engagements have common elements:
o Multiple creditors
o Significant amounts of debt
o Complex legal/regulatory environments
o Fundamentally sound business models
o Urgent need for professional third party intervention
Metro Capital also specializes in helping with orderly wind-downs, especially when personal guarantees are involved.